Note:

This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

April 13, 2020

Financial Results for FY2019 Q3
Company name: Sansan, Inc.
Listing:
Tokyo Stock Exchange
Securities code:
4443
URL:
https://www.corp-sansan.com/
Representative:
Chikahiro Terada, Representative Director & CEO
Inquiries:
Muneyuki Hashimoto, Executive Officer, CFO
TEL:+81-3-6758-0033
Scheduled date to file quarterly securities report:
April 13, 2020
Scheduled date to commence dividend payment:–
Preparation of supplementary materials on financial results:
Yes
Holding of financial results meeting:Yes (for institutional investors andanalysts)(Millions of yen with fractional amounts rounded down, unless otherwise noted)

1. Consolidated financial results for the first nine months of the fiscal year ending May 31, 2020
(from June 1, 2019 to February 29, 2020)(1) Consolidated operating results (cumulative)
Net sales
Nine months ended
February 29, 2020
February 28, 2019

Nine months ended
February 29, 2020
February 28, 2019

Operating profit

Millions of yen% Millions of yen

9,671
7,361

Note: Comprehensive income(Percentages indicate year-on-year changes.)

31.4
–

193
(655)

Profit attributable toowners of parent

Ordinary profit% Millions of yen

–
–

81
(684)

% Millions of yen

–
–

(94)
(688)

%

–
–

Nine months ended February 29, 2020: ¥ (96) million [–%]
Nine months ended February 28, 2019: ¥ (686) million [–%]

Basic earnings per
share

Diluted earnings
per share

Yen

Yen

(3.05)(32.25)––

Note: Diluted earnings per share is not stated because, although potential shares exist, basic loss per share was recorded.

(2) Consolidated financial position
Total assets
As ofFebruary 29, 2020
May 31, 2019
Reference:

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen%

21,253
9,079

10,125
3,372

47.6
37.0

EquityAs of February 29, 2020:
As of May 31, 2019:¥10,114 million¥3,362 million

2. Cash dividends
Annual dividends
First quarter-end

Second quarter-end Third quarter-end

Yen

Fiscal year ended
May 31, 2019
Fiscal year ending
May 31, 2020

Yen

Fiscal year-end

Yen

–

0.00

–

–

0.00

–

Fiscal year ending
May 31, 2020
(Forecast)
Note: Revisions to the forecast of cash dividends most recently announced: None

Total

Yen

Yen

0.00

0.00

–

–

3. Consolidated earnings forecasts for the fiscal year ending May 31, 2020 (from June 1, 2019 to
May 31, 2020)

Net sales

Fiscal year ending
May 31, 2020

(Percentages indicate year-on-year changes.)
Basic
Profit attributable toOrdinary profit
earnings perowners of parent
share

Operating profit

Millions ofyen%Millions ofyen

13,221

29.5

591

%

–

Millions of
yen

485

%

–

Millions of
yen

–

%

–

Yen

–

Notes: 1. Revisions to the earnings forecasts most recently announced: Yes
2. Although the Company is expecting to return to the black and post a profit attributable to owners of parent, it isdifficult to make a precise forecast. Accordingly, the Company will refrain from disclosing a concrete forecast at
this point in time.

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
(2) Application of specific accounting for preparing the quarterly consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates, and restatementa. Changes in accounting policies due to revisions to accounting standards and other regulations:Noneb. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: None
d. Restatement: None
(4) Number of issued shares (Common shares)
a. Total number of issued shares at the end of the period (including treasury shares)
As of February 29, 2020

31,138,853 shares

As of May 31, 201929,432,353 sharesb. Number of treasury shares at the end of the period
As of February 29, 2020–

As of May 31, 2019–c. Average number of outstanding shares during the period
For the nine months ended February 29, 2020

30,857,908 shares

For the nine months ended February 28, 2019

21,359,481 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public
accountants or an audit corporation.
* Proper use of earnings forecasts, and other special matters
Forward-looking statements, including the consolidated forecasts stated in these materials, are based on
information currently available to the Company and certain assumptions deemed reasonable. Results
may differ materially from the consolidated forecasts due to various factors.

Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q3

Attached Material
Index
1. Qualitative information on quarterly consolidated financial results ......................................................... 2(1) Explanation of operating results ............................................................................................................ 2(2) Explanation of financial position ........................................................................................................... 5(3) Explanation of consolidated earnings forecasts and other forward-looking statements ........................ 6
2. Quarterly consolidated financial statements and significant notes thereto ............................................... 7(1) Quarterly consolidated balance sheet .................................................................................................... 7(2) Quarterly consolidated statements of income and comprehensive income ........................................... 9
Quarterly consolidated statement of income ......................................................................................... 9
Quarterly consolidated statement of comprehensive income .............................................................. 10(3) Notes to the quarterly consolidated financial statements..................................................................... 11(Notes on premise of going concern)................................................................................................... 11(Notes on significant changes in the amount of shareholders’ equity) ................................................ 11(Segment information, etc.) ................................................................................................................. 11(Significant events after reporting period) ........................................................................................... 12- 1 -Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q3

1. Qualitative information on quarterly consolidated financial results(1) Explanation of operating results
Under the mission of “Turning encounters into innovation,” the Group is developing services tied tosolving various issues that companies and business people face, such as business card management, byusing new approaches that combine “technology and data-input-based business card digitization
systems” with “cloud software.” Specifically, the Group operates the Sansan Business, which provides“Sansan,” a cloud-based business card management service that enables users to digitize business cards
in order to visualize and share the networks between individuals, and the Eight Business, which
operates “Eight”: Your Business Card Management App that incorporates a system of social
networking services and changes business cards into a business network. In addition, the DSOC (Data
Strategy & Operation Center), which serves as Data Integration Division, takes on the job of digitizing
business cards as both business’s shared infrastructure. The DSOC continues to pursue new technology
development and improvement in data-input operations.
The Sansan and Eight Businesses that the Group provides are services used by many companies andbusiness people and are based on a basic business need of business card management, and the data andinformation collected form the backbone of those services. Therefore, we believe that there is highpotential for syncing with other services and databases and that all the requirements are there for abusiness platform. Accordingly, by increasing the value of these two businesses as a business platform,
we believe they have the special characteristic of providing easy access to various business
opportunities.
In the first nine months of the fiscal year ending May 31, 2020, the Company engaged in initiatives
such as strengthening the sales structure, including human resources, in order to realize continuous
growth of net sales.
As a result, the Sansan Business and the Eight Business have performed steadily, and net sales totaled¥9,671,494 thousand (up 31.4% year on year), gross profit totaled ¥8,313,942 thousand (up 34.4% year
on year), and gross profit margin was 86.0% (up 1.9 points year on year) in the period under review. In
addition, operating profit was ¥193,904 thousand (compared to operating loss of ¥655,001 thousand in
the previous fiscal year), and ordinary profit was ¥81,186 thousand (compared to ordinary loss of¥684,255 thousand in the previous fiscal year). The Company has suspended the holding of “Sansan
Innovation Project 2020,” a business conference sponsored by the Company that was to be held on
March 12-13, 2020, and various seminars due to the spread of a novel coronavirus (COVID-19). As aresult of recording extraordinary losses of ¥54,087 thousand in various costs for the preparation to holdthese events, etc., loss attributable to owners of parent of ¥94,154 thousand (compared to loss
attributable to owners of parent of ¥688,904 thousand in the previous fiscal year) was recorded.

Results by segment are as follows.

(i) Sansan BusinessIn the Sansan Business, the Company develops “Sansan,” the B2B cloud-based business cardmanagement service, based on the concept of “Effortless organization. Seamlessly simple.” By
using “Sansan” to solve various issues faced by companies, such as “information on the exchangeof business cards is not shared within the company” and “we don’t think about the value held bybusiness card information,” and change the business cards with dormant potential in the company
into an asset that can be used through business activities, we believe we are able to maximize thevalue of business “encounters.” Simply by having the user companies scan their business cards, it
becomes possible to accurately digitize the business card information using data input operators,
etc. of the Group and of external information processing partners and use the business cardmanagement functions through the cloud-based applications. With these features, not only can
individual employees manage their business cards, it also becomes possible to share Contact Datathroughout the organization. Furthermore, Sansan provides a broad range of customer management
tools, such as the distribution of news on personnel changes to inform people of the latest personnel
information and the ability to send batch emails.

- 2 -Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q3

Through the ability to quickly access the cloud-based Contact Data from PCs or smartphones andthe ability to utilize the functions to search such data and use call/messaging functions, etc.,
business people are able to realize improvements in productivity, general office operations, and cost
cutting benefits. Moreover, we believe that the ability to share Contact Data inside the organization,
aggregate the customer data existing inside the company and other such benefits will give shape toadvanced marketing activities, customer management, and the like that will lead to the creation ofbusiness opportunities for the user company.
As a business model, the Company is pursuing a monthly fee for licenses on the premise of all staff
members in the user company using the service (company-wide use). The monthly usage fee iscalculated by the usage fees of the optional functions, scanner rental fees, etc. being added to thelicense cost, which is calculated based on the number of business cards that are digitized in the user
company. In addition, at the time the service is being introduced, additional paid services areprovided relating to the digitization of the existing large volumes of paper-format business cards
retained by the user company, activities to support introduction, etc.
For the period under review, the Company continued to engage in initiatives such as strengthening
the sales structure, including hiring of salespeople, in order to further increase the number ofsubscriptions and increase monthly sales per subscription for “Sansan,” a cloud-based businesscard management service. As a result, in addition to progress in the use of our services by major
manufacturers, the Company has also steadily acquired new subscriptions among medium to small
enterprises due to a revision of pricing strategy. At the end of the third quarter of the fiscal year
ending May 31, 2020, the number of “Sansan” subscriptions totaled 6,587, up 14.8% year on year,
and monthly sales per subscription was ¥163 thousand, up 14.0% year on year. Furthermore, as aresult of carrying out ongoing initiatives to expand use among existing customers to achieve astronger customer foundation, the last 12 months average of monthly churn rate (Note 1.) was
0.55%, an improvement of 0.18 points year on year.
As a result, net sales totaled ¥8,930,916 thousand (up 27.9% year on year) and segment profit
totaled ¥3,235,948 thousand (up 64.3% year on year) in the period under review.

The Company announced “Sansan Plus,” a new business strategy, on March 11, 2020. “Sansan
Plus” is a business platform that can improve work efficiency and enhance the value of data, and it
enables “Sansan” users to consolidate various operations on “Sansan”.
Sansan Plus comprises three concepts: “Sansan Plus App,” “Sansan Plus Consulting,” and “Sansan
Plus Integration.” Together with each partner company, “Sansan Plus” provides various
applications, consolidates various data accumulated within a company, and provides consultation
on digital initiatives, based on the accurate business card data created through “Sansan.” Throughthese efforts, “Sansan Plus” can propel corporate growth.
First, “Sansan Plus App” is a package of optional functions usable within “Sansan” by integrating“Sansan” with external services, and it provides value and functionality that did not previously
exist by serving as the gateway for integrating business card data with these external services.
Optional functions are shown in the table below.

- 3 -Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q3

Table of optional functions in the “Sansan Plus App”
Name of function

Overview of function

Date of provision(planned)
Now available

Salesforce Opportunity Integration

Enables users to check Salesforce data related to thecompanies of people with whom they have exchanged
business cards, and understand the status of businessnegotiations

Risk Intelligence powered by
Refinitiv

Enables users to check for antisocial forces just by scanninga business card

Now available

Questionnaires powered by
CREATIVE SURVEY

Enables efficient use of questionnaires when holding
seminars

Now available

Referral Recruitment for Eight

Enables use of human networks of internal staff in
Now available
recruitment activities through integration with “Eight Career
Design”

Contract Management for
CloudSign

Enables understanding of the status of contracts concluded
between one’s own company and the companies of people
with whom one has exchanged business cards

May 2020

Corporate Information Database
powered by Teikoku Databank

Enables visualization of Teikoku Databank information heldby the user after linking it with business cards

June 2020

Next, the Company worked in collaboration with Accenture Japan Ltd for “Sansan Plus
Consulting,” which provides consulting support for digitization for companies using the various
services within “Sansan.”Finally, the Company worked in collaboration with toBe marketing, inc. and Realize Corporation
on data integration efforts for “Sansan Plus Integration,” which provides consultation for the
integration of internal data that is scattered throughout a company. The Company will provide data
consulting services for using “Sansan Data Hub,” which is the data integration solution provided by“Sansan,” together with solutions at individual companies.
In addition, against a backdrop of remote working and working styles that use the internet rapidly
expanding, the Company has decided to install “Online Business Cards / Online Business Card
Exchange” functions to “Sansan.” By using these functions, “Sansan” users will be able to easily
send their business card information using the internet. The Company is planning to provide thisfunction as a basic function of “Sansan” in June 2020.
Note 1. Ratio of decrease in monthly fees associated with subscription cancellations to totalmonthly fees for existing subscriptions for “Sansan.”(ii) Eight BusinessIn the Eight Business, the Company operates the business card application “Eight” as the new
business network service that goes beyond pure business card management to incorporate a systemof social networking services based on the concept of “Business-Focused SNS Connected with
Business Cards.”
We believe that through using “Eight,” it will be possible to resolve issues that business people
struggle with such as “I’m not making use of my business encounters” and “I cannot easily accessmy business card information.” “Eight,” like “Sansan,” is a service whereby the business card
information of the user and their contacts are accurately digitized simply through scanning thebusiness cards. In the case of “Eight,” first, by registering their own business card, the user creates
their own page, which they can use throughout their business life, and on that page, they are able tomanage their profile. Next, by registering the business cards of their contacts, the user is able to
make use of the business card management functions, and all the Contact Data that has been
converted to cloud-based data can be accessed at any time from either a smartphone or a PC.
Furthermore, when the information of a contact who is connected through the networking service
changes, the most recent information will be automatically updated in the registered Contact Data,and the user will be notified of this change. Users are also able to use a messaging function for- 4 -Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q3

business chats, and they are able to more smoothly utilize their own personal business networks.
Users can also use the service for collecting corporate information that interests them andperforming job searching activities.
As a business model, the Company bases the business on the application that enables users to use
the profile management and business card management features at no cost. On top of this, theCompany provides the B2C services, “Eight Premium,” for individuals who want access to extra
user functions and the B2B services such as “Eight Company Premium,” a service that allows thesharing of business cards registered on “Eight” within a company, “Eight Ads,” a service thatenables advertisements to be disseminated to “Eight” users, “Meets,” a business event that
increases productivity by efficiently matching “buyers” and “sellers,” and “Eight Career Design,” arecruitment related service that enables hiring companies (corporate client users) to approach job
seekers (individual users) on the job search platform.
In the period under review, the Company worked on strengthening monetization through “Eight
Company Premium,” the B2B service, and other methods in “Eight,” the business card application.
As a result, the number of “Eight Company Premium” subscriptions at the end of the quarter underreview totaled 1,354, an increase of 116.6% year on year and the number of “Eight” users (Note 2.)
totaled 2.65 million, an increase of 0.29 million year on year.
As a result, net sales for the period under review totaled ¥740,577 thousand (up 95.2% year onyear), of which net sales from B2C services totaled ¥217,687 thousand (up 27.1% year on year),and net sales from B2B services totaled ¥522,890 thousand (up 151.3% year on year). Segment loss
was recorded at ¥715,289 thousand (compared to ¥907,819 thousand in the previous fiscal year)
due to being in the phase in which upfront investments were being made to increase future
profitability.
Note 2. Number of confirmed users that downloaded the application and registered their own
business cards.

(2) Explanation of financial position
AssetsTotal assets at the end of the third quarter of the fiscal year ending May 31, 2020 were ¥21,253,128
thousand, up ¥12,174,012 thousand from the end of the previous fiscal year. This was primarily due toan increase of ¥6,555,520 thousand in cash and deposits from issuing new shares, etc. and an increaseof ¥5,235,820 thousand in investment securities as a result of investment into WingArc1st.
Liabilities
Total liabilities at the end of the quarter under review were ¥11,128,010 thousand, up ¥5,421,858
thousand from the end of the previous fiscal year. This was primarily due to an increase of ¥4,030,112
thousand in long-term borrowings as a result of borrowing money to procure investment capital for
WingArc1st, an increase of ¥1,063,302 thousand in current portion of long-term borrowings and anincrease of ¥87,839 thousand in advances received from receiving a lump-sum payment of contract
term fees from customers.
Net assets
Net assets at the end of the quarter under review were ¥10,125,118 thousand, up ¥6,752,153 thousand
from the end of the previous fiscal year. This was primarily due to increases of ¥3,424,149 thousand ineach of share capital and capital surplus from issuing new shares in association with the listing of theCompany’s common shares on the Tokyo Stock Exchange Mothers, and a decrease of ¥94,154
thousand in retained earnings due to recording of loss attributable to owners of parent. In addition, theCompany reduced capital surplus by ¥947,106 thousand and transferred them to retained earnings inorder to achieve future flexible and dynamic capital policy by eliminating cumulative loss early basedon the resolution at the meeting of the Board of Directors that took place on July 30, 2019.

- 5 -Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q3(3) Explanation of consolidated earnings forecasts and other forward-looking statements
In the Eight Business, the Company revised the number of events to be held downward as a result ofgreatly revising the events planned to be held for the business event “Meets” after taking performance,
etc. until the second quarter into consideration. In addition, as a result of circumstances such as thepossible postponement of a large-scale event and other events that were planned for the fourth quarterdue to the spread of the novel coronavirus (COVID-19), the Company is expecting financial results tofall short of the earnings forecasts made at the beginning of the fiscal year.
In the Sansan Business, as a result of the strengthening of the sales structure, which proceeded from thesecond half of the previous fiscal year, steady growth continued year on year through the third quarter.
Due to the spread of the novel coronavirus (COVID-19), the business environment is partiallyuncertain in the fourth quarter from the aspect of new subscription acquisition, but the Sansan Businessperformance is expected to be largely in line with the earnings forecasts made at the beginning of the
fiscal year. Although there is a rapidly growing trend of expanding diverse working styles such as
remote work and non-face-to-face sales, significant impacts on existing subscriptions in the Sansan
Business, which accounts for a large portion of the Company’s financial results, are not expected tooccur. This is because “Sansan,” a cloud-based business card management service, has the ability tosupport a variety of working styles such as remote work due to having the special characteristic of
being able to access customer information with a high level of security regardless of time and place, in
addition to having a low average monthly churn rate of 0.55% for the most recent 12 months at the endof February 2020. Furthermore, the payment model has been constructed in a manner where it isdifficult to feel the impact of short-term changes in the business environment by concluding yearly
contracts where the yearly usage fee is set in advance.
As a result of the above, consolidated sales are expected to total ¥13,221,000 thousand (¥595,000
thousand decrease from the previous forecast). In light of the uncertain business environment,
consolidated operating profit is expected to total ¥591,000 thousand (¥133,000 thousand decrease fromthe previous forecast) as a result of flexibly reviewing a portion of the investment plan, focusing on
advertising activities. Furthermore, consolidated ordinary profit is expected to total ¥485,000 thousand(¥185,000 thousand decrease from the previous forecast).
For details, please see “Notification regarding Booking of Non-operating Expenses and Extraordinary
Losses, and Revision of Consolidated Full-year Earnings Forecasts,” which was separately disclosed on
April 13, 2020.

- 6 -Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q3

2. Quarterly consolidated financial statements and significant notes thereto(1) Quarterly consolidated balance sheet(Thousands of yen)
As of May 31, 2019
AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Prepaid expenses
Consumption taxes receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Leasehold deposits
Other
Total investments and other assets
Total non-current assets
Total assets- 7 -As of February 29, 2020

5,627,035
318,354322,660
266
32,996(2,704)
6,298,608

12,182,555
330,996471,167
301
26,216(3,154)13,008,083

406,924

469,339

834,737390
835,127

887,218
293
887,512

1,093,800
439,537
5,118
1,538,455
2,780,508
9,079,116

6,329,620
555,155
3,417
6,888,193
8,245,045
21,253,128

Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q3(Thousands of yen)
As of May 31, 2019
Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Accounts payable - other
Income taxes payable
Accrued consumption taxes
Advances received
Provision for bonuses
Provision for loss on closure of business locations
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Total shareholders’ equity
Accumulated other comprehensive income
Foreign currency translation adjustment
Total accumulated other comprehensive income
Share acquisition rights
Total net assets
Total liabilities and net assets- 8 -As of February 29, 2020

96,16918,000133,134
770,424
41,283
184,745
3,923,177
199,0106,960
55,8685,428,772

92,98980,0001,196,436
760,223
141,354251,566
4,011,016
140,154–
146,353
6,820,094

233,71443,664
277,378
5,706,151

4,263,826
44,0894,307,915
11,128,010

2,812,501
1,500,000(942,592)
3,369,909

6,236,650
3,977,043(89,640)
10,124,053(7,607)(7,607)
10,663
3,372,965
9,079,116(9,598)(9,598)
10,663
10,125,118
21,253,128

Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q3(2) Quarterly consolidated statements of income and comprehensive income
Quarterly consolidated statement of income(Thousands of yen)
Nine months ended
February 28, 2019
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest and dividend income
Cancellation penalty income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on cancellation of leases
Share issuance cost
Stock market listing expenses
Commission expenses
Foreign exchange losses
Loss on cancellation of rental contracts
Share of loss of entities accounted for using equity
methodOther
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on reversal of share acquisition rights
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Loss on cancellation of events
Total extraordinary losses
Loss before income taxes
Income taxes - current
Loss
Loss attributable to owners of parent- 9 -Nine months ended
February 29, 2020

7,361,986
1,175,608
6,186,378
6,841,380(655,001)

9,671,494
1,357,551
8,313,942
8,120,038
193,904

1,462
6,750
3,840
12,054

1,590
2,149
921
4,660

3,506
8,836
10,530–2,002
190
16,130

10,329–28,102
15,04919,457
1,309––

37,914112
41,307(684,255)

5,215
117,378
81,186

4,725
4,725

–
–

3,976
–
–
3,976
(683,507)
5,397(688,904)(688,904)

6,421
37,85454,087
98,363(17,177)
76,977(94,154)(94,154)

Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q3

Quarterly consolidated statement of comprehensive income(Thousands of yen)
Nine months ended
February 28, 2019
Loss
Other comprehensive income
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent- 10 -

Nine months ended
February 29, 2020

(688,904)(94,154)

2,639
2,639
(686,264)(1,990)(1,990)(96,145)(686,264)(96,145)

Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q3(3) Notes to the quarterly consolidated financial statements(Notes on premise of going concern)
Not applicable.

(Notes on significant changes in the amount of shareholders’ equity)
The share capital and the capital surplus both received an addition of ¥3,424,149 thousand due to the
new issuance of shares in association with the listing of the Company’s common shares on the Tokyo
Stock Exchange Mothers. On the other hand, mainly as a result of deducting the amount of ¥947,106
thousand of capital surplus and transferring it to retained earnings in order to eliminate cumulative loss,
the share capital, capital surplus and retained earnings were ¥6,236,650 thousand, ¥3,977,043 thousand,and ¥(89,640) thousand, respectively.
(Segment information, etc.)[Segment information]
First nine months of the fiscal year ended May 31, 2019 (from June 1, 2018 to February 28, 2019)
1. Information on the amount of sales and profit (loss) for each reportable segment(Thousands of yen)Amount in thequarterly
Adjustments
consolidated(Note) 1
financialstatement(Note) 2

Reportable segment
SansanBusiness
Net sales
Sales to external customers
Inter-segment sales andtransfers

Eight Business

Total

6,982,603

379,383

7,361,986–

7,361,986

–

–

–

–

–

Total

6,982,603

379,383

7,361,986–

7,361,986

Segment profit (loss)

1,969,968(907,819)

1,062,149(1,717,151)(655,001)

Notes: 1. The adjustments stated for segment profit (loss) of negative ¥1,717,151 thousand comprises the amounts ofcorporate expenses not attributable to any reportable segment and mostly consists of general and administrative
expenses.
2. Segment profit (loss) is adjusted with operating loss in the quarterly consolidated statement of income.

First nine months of the fiscal year ending May 31, 2020 (from June 1, 2019 to February 29, 2020)
1. Information on the amount of sales and profit (loss) for each reportable segment(Thousands of yen)Amount in thequarterly
Adjustments
consolidated(Note) 1
financialstatement(Note) 2

Reportable segment
SansanBusiness
Net sales
Sales to external customers
Inter-segment sales andtransfers

Eight Business

Total

8,930,916

740,577

9,671,494–

9,671,494

–

–

–

–

–

Total

8,930,916

740,577

9,671,494–

9,671,494

Segment profit (loss)

3,235,948(715,289)

2,520,658(2,326,754)

193,904

Notes: 1. The adjustments stated for segment profit (loss) of negative ¥2,326,754 thousand comprises the amounts ofcorporate expenses not attributable to any reportable segment and mostly consists of general and administrative
expenses.

- 11 -

Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q3
2. Segment profit (loss) is adjusted with operating profit in the quarterly consolidated statement of income.

2. Information on impairment loss of non-current assets or goodwill, etc. for each reportablesegment(Significant impairment loss on non-current assets)
As corporate expenses not belonging to the Sansan Business, Eight Business and any reportablesegment, the Company reduced the carrying amounts for software to their recoverable amounts
and recorded the amounts of reduction in impairment loss.
The relevant amounts recorded in impairment loss for the nine months ended February 29, 2020
were ¥6,387 thousand for the Sansan Business, ¥9,648 thousand for the Eight Business and¥21,818 thousand for corporate expenses not belonging to any reportable segment.
(Significant events after reporting period)
Addition of equity-method affiliate through acquisition of shares
The Company resolved at an extraordinary meeting of the Board of Directors held on April 3, 2020 toacquire shares of SATORI, Inc. (hereinafter “SATORI”), and purchased the shares on April 9, 2020. As
a result of acquiring the shares, the Company’s ownership of SATORI became 27.4%, making SATORI
an equity-method affiliate of the Company.
1.

PurposeWith the aim of enhancing both its shareholder and corporate value over the medium- to long-term,
the Group is working for further growth in the Sansan Business and monetization of the Eight
Business. In the Sansan Business, in addition to expanding usage of “Sansan,” promoting the
evolvement of the “Sansan” business platform by linking with external services and strengthening
in-house development is one of the Company’s key growth strategies.
Under these strategies, the Company acquired shares of SATORI, which develops and sells
marketing automation tools, and by making SATORI an equity-method affiliate, is working tofurther increase its service value.

2.

Overview of the company whose shares were acquired(1) Company name:
SATORI, Inc.
(2) Head office:
SHIBUYA CULTURAL CENTER OWADA 11F, 23-21 Sakuragaokacho, Shibuya-ku, Tokyo(3) Representative:
Kosuke Ueyama(4) Description of business: Development and sales of marketing automation tools(5) Capital:
1,513 million yen(6) Founded:
September 2015

3.

Number of shares held after acquisition, acquisition costs and ownership after acquisition(1) Number of shares held after acquisition: 46,646 shares(2) Acquisition costs:
Due to a confidentiality requirement for the relatedparties, the Company is refraining from disclosing
the acquisition costs. However, fair and valid
acquisition costs were ensured based on the stock
valuation by an expert and were decided after
discussions were held with the parties involved in theacquisition.
(3) Ownership after acquisition:
27.4%

4.

Method of procurement of payment funds and payment
Using own capital- 12 -